Bank on These 7 Preferred Dividend Shares

To hedge against uncertainties in capital appreciation, consider preferred stocks. Preferred stocks don’t offer the same profit potential as common stock. However, they are more stable investment vehicles because they guarantee a regular dividend that is typically tied to company cash and earnings rather than future cash flow considerations. This type of stock guarantees dividends, which common stock does not. Considering the low interest rate environment in today’s market, the following companies’ preferred stocks have shown solid performance by paying out consistent dividends alongside positive price movements. It seems unlikely Bernanke will raise rates in the first half of 2011, given the precarious nature of the recovery, so we believe risk of erosion in the following names is limited. However, we advise you to do your own due diligence. Bank of America Series I Preferred ((BAC-I)) has consistently made all dividend payments since inception. The current yield is 7%. The... Read more